Value Line® Target 25 Portfolio, 2nd Quarter 2017 Series
Value Line® Target 25 2Q '17 - Term 7/9/18 (Value Line®
Target 25 Portfolio) is a unit investment trust which invests in a fixed portfolio
of stocks for approximately 15 months. The stocks are selected by applying a
disciplined investment strategy which adheres to pre-determined factors. The
portfolio seeks above-average total return; however, there is no assurance the
objective will be met.
The strategy is based on these steps:
- We begin with the 100 stocks that Value Line® currently gives a #1 ranking
for TimelinessTM (stocks of financial companies and companies whose shares
are not listed on a U.S. exchange are not eligible for inclusion in the Value
Line® Target 25 Strategy). Value Line® ranks approximately 1,700 stocks, only
100 of which are given their #1 ranking for TimelinessTM. They base their
rankings on a long-term trend of earnings, prices, recent earnings, price
momentum, and earnings surprises.
- We then rank the Value Line® #1 stocks for TimelinessTM
based on their 12- month and 6- month price appreciation, return on assets,
and price to cash flow.
- The 25 eligible stocks with the best overall ranking on
the four factors are selected by the sponsor for the
portfolio. The stocks are weighted by market
capitalization subject to a minimum weighting of
approximately 1% and a maximum weighting of
If this strategy had been applied since 1985, investors
would have realized higher total returns than by investing
in the S&P 500 Index. It is important to note that the past
performance of the strategy is hypothetical and it is not
indicative of the future performance of the Value Line®
Target 25 Portfolio. Although this unit investment trust
terminates in approximately 15 months, the strategy is
long-term. Investors should consider their ability to
pursue investing in successive portfolios, if available.
There may be tax consequences unless units are
purchased in an IRA or other qualified plan.
|Not FDIC Insured Not Bank Guaranteed May Lose Value
| Standard Deviations*
|| Average Annual Total Returns*
|Annual Total Returns
Past performance is no guarantee of future results and the actual current
performance of the portfolio may be lower or higher than the hypothetical performance
of the strategy. Hypothetical returns for the strategy in certain years were
significantly higher than the returns of the S&P 500 Index. Hypothetical strategy
returns were the result of certain market factors and events which may not be
replicated in the future. You can obtain performance information which is current
through the most recent month-end by calling First Trust Portfolios L.P. at
1-800-621-1675 option 2. Investment return and principal value of the portfolio
will fluctuate causing units of the portfolio, when redeemed, to be worth more
or less than their original cost.
Simulated strategy returns are hypothetical, meaning that they
do not represent actual trading, and, thus, may not reflect
material economic and market factors, such as liquidity
constraints, that may have had an impact on actual decision making. The hypothetical performance is the
retroactive application of the strategy designed with the full benefit of hindsight.
Strategy returns reflect a sales charge of 2.95% in the first year, 1.95% in subsequent years, estimated
annual operating expenses of 0.174%, plus organization costs, but not taxes or commissions paid by the
portfolio to purchase securities. Returns assume that all dividends received during a year are reinvested
monthly. Actual portfolio performance will vary from that of investing in the strategy stocks because it
may not be weighted the same as the strategy stocks and may not be fully invested at all times. It is
important to note that the strategy may underperform the S&P 500 Index in certain years and may
produce negative results.
The S&P 500 Index is an unmanaged index of 500 stocks used to measure large-cap
U.S. stock market performance.The index cannot be purchased directly by investors.
Standard Deviation is a measure of price variability (risk). A higher degree of variability indicates more volatility and therefore greater risk.
You should consider the portfolio's investment objectives, risks, and
charges and expenses carefully before investing. Contact your financial advisor
or call First Trust Portfolios, L.P. at 1.800.621.1675 to request a prospectus,
which contains this and other information about the portfolio. Read it carefully
before you invest.
An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition of the stock market. In addition, the portfolio is heavily weighted in only a few stocks, making it more volatile than an equally-weighted portfolio.
An investment in a portfolio containing small-cap and mid-cap companies is subject to additional risks,
as the share prices of small-cap companies and certain mid-cap companies are often more volatile than
those of larger companies due to several factors, including limited trading volumes, products, financial
resources, management inexperience and less publicly available information.
You should be aware that the portfolio is concentrated in stocks in the consumer products sector
which involves additional risks, including limited diversification. The companies engaged in the
consumer products industry are subject to global competition, changing government regulations
and trade policies, currency fluctuations, and the financial and political risks inherent in
producing products for foreign markets.
An investment in a portfolio containing equity securities of foreign issuers is subject to
additional risks, including currency fluctuations, political risks, withholding, the lack of
adequate financial information, and exchange control restrictions impacting foreign issuers.
Risks associated with investing in foreign securities may be more pronounced in emerging
markets where the securities markets are substantially smaller, less developed, less liquid, less
regulated, and more volatile than the U.S. and developed foreign markets.
Because the portfolio is concentrated in companies headquartered in Japan, the portfolio may
present more risks than a portfolio which is broadly diversified over several regions.
One of the securities in the portfolio is issued by a Real Estate Investment Trust (REIT).
Companies involved in the real estate industry are subject to changes in the real estate market,
vacancy rates and competition, volatile interest rates and economic recession.
The value of the securities held by the trust may be subject to steep declines
or increased volatility due to changes in performance or perception of the issuers.
"Value Line," "The Value Line Investment Survey," and "Timeliness"are trademarks or
registered trademarks of Value Line, Inc. ("Value Line") in the United States and other
countries and have been licensed for use for certain purposes by First Trust Portfolios L.P.
and First Trust Advisors L.P. This product is not sponsored, endorsed, recommended, sold
or promoted by Value Line and Value Line makes no representation regarding the
advisability of investing in products utilizing such strategy. First Trust Portfolios L.P. and
First Trust Advisors L.P. are not affiliated with any Value Line company.